Exhibit 99.1

2

Forward-Looking Statement

This presentation contains forward-looking

statements, which are subject to risks and

uncertainties. Additional discussion of factors

that could cause actual results to differ materially

from management’s projections, forecasts,

estimates, and expectations is contained in the

CarMax, Inc. SEC filings.

3

CarMax Today

Used Car Superstores

Nation’s largest used car retailer

71 used car superstores

34 markets

FY06:

•

Sales:        $6.3 Bn     +19%

•

Net profit:  $134 mm  +32%

Orlando

Tampa

Miami / Ft. Lauderdale

Baltimore / DC

Chicago

Charlotte

Greensboro

Greensboro

Mid-sized Markets (26)

Large Markets (8)

Greenville

Birmingham

Memphis

Louisville

Indianapolis

Columbia

1

1

2

1

2

1

1

1

1

2

2

2

2

2

2

5

4

4

8

4

4

1

1

1

1

2

5

1

1

Jacksonville

Houston

San Antonio

Austin

Sacramento

1

Salt Lake

City

Nashville    

Knoxville    

Albuquerque

Las Vegas

Kansas City

Richmond

Atlanta

Raleigh

Los Angeles

1

Va. Beach

1

1

Wichita

1

Hartford

2

Columbus

1

Oklahoma City

Dallas/Fort Worth

4

CarMax Today

Sustainable Store Growth Restarted

0

0

1

2

4

7

18

29

33

33

35

42

49

58

67

78

0

20

40

60

80

Prototype

Development

Prototype

Refinement

Competitive

Response

(Rapid Growth)

Stabilization

Growth Restart

5

CarMax Today

Unit Growth Continued

0

0

1,300

5,574

19,618

31,701

56,594

96,915

111,247

132,868

164,062

190,135

224,099

253,168

289,888

0

50,000

100,000

150,000

200,000

250,000

300,000

FY92

FY93

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

Competitive

Response

(Rapid Growth)

Stabilization

Growth Restart

Prototype

Refinement

Prototype

Development

6

CarMax Today

Profitability Established

$0

($25)

($2)

($4)

($5)

($9)

($34)

($24)

$.5

$44

$89

$90

$110

$101

$134

($50)

$0

$50

$100

$150

$200

FY92

FY93

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

Prototype

Development

Prototype

Refinement

Competitive

Response

(Rapid Growth)

Stabilization

Growth Restart

* Revised for the effects of stock-based compensation expense

7

Results

FY06

FY07e

Used unit comp growth

4%

2%-- 8%

Total sales growth

19%

Net earnings growth

32%

EPS

$1.27

$1.25 -- $1.47

After adoption of SFAS 123R

8

1Q FY07 Results

FY07

Used unit comp growth

6%

Used unit sales growth

14%

Total sales growth

19%

Net earnings growth

54%

EPS

53¢

After adoption of SFAS 123R

9

What Is CarMax?

Unique retail opportunity

Provides superior economic returns

10

CarMax Sells More Cars

Unit Sales / Store

CarMax (FY06)

5,040

used

Public new car dealers

1,640

new & used

Average new car dealer

1,325

new & used

Source: CarMax estimates and NADA 2005

11

CarMax Gains Market Share

Used Car 

Comp Unit Sales

2005

4-Year

Average

CarMax (FY06)

+4%

+5%

Public new car dealers

0%

(4)%

Source: Company reports and CarMax estimates

12

Why Does CarMax Work?

Used car focus

Consumer-preferred concept

Process-driven competitive advantages

Organic growth plan

13

Used Car Focus

Used Unit Sales

Mix %

Per month

CarMax (FY06)

93%

420

Public new car dealers

35%

50

Average new car dealer

41%

45

Source: Published auto retailer reports and NADA 2005

14

Why Used Cars?

Huge, fragmented business

Non-commodity

Stable

15

Used Vehicle Sales Stable

Source: Manheim Auctions

-12.0%

-6.0%

0.0%

6.0%

12.0%

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005e

% Change New Vehicle Unit Sales

% Change Used Vehicle Unit Sales

16

Consumer-Preferred Concept

Low, no-haggle prices

Huge selection of late-model

used cars

Guaranteed quality

Customer-friendly service

17

Proprietary Operating Process

Finance

Originations

Purchasing/

Inventory

Management

Reconditioning

Consumer

Consumer

Offer

Offer

18

Fortune Magazine Recognition

•

Two years running (2005, 2006)

•

Only auto retailer or manufacturer

on list

•

Voted #1 in Automotive Retailing

19

Organic Growth

Creates value

Not acquisition dependent

Not 3

rd

-party constrained

20

Opportunity Scale

Market:

$280 Bn

Currently

30% of U.S.

Mature Stores

8% -

10% market share

21

Growth Plan

(FY06 –

FY10)

5-year goal:

$10 -

$12 Bn

Comp used unit growth:

4%  -

8%

New store openings

15% -

20%

New store openings

Store margin expansion

Fixed overhead leverage

Profit Growth

Sales Growth

22

FY07 Planned New Superstores

Fredericksburg

(DC / Richmond)

Gastonia

(Charlotte)

1

1

1

Austin South

Atlanta

Burbank

(Los Angeles)

New Stores Remaining to be Opened

New Stores Remaining to be Opened

1

Oklahoma City

1

Hartford

Charlottesville

(Richmond)

2

Columbus

1

Car Buying Center Test

Car Buying Center Test

1

1

Fresno

New Stores Opened to Date

New Stores Opened to Date

1

New Haven

23